US UoM Consumer Sentiment Index is seen at 47.8 in September

Consumer confidence is expected to cool further in September
One-year inflation expectation picked up pace to 4.6%

FXStreet Team FXStreet

American consumer confidence is expected to lose some traction in September, as households have been growing more pessimistic about current conditions and the broader economic outlook, according to preliminary data from the University of Michigan.

The closely watched Consumer Sentiment Index is predicted to have weakened to 47.8 from 51.7 in the previous month, missing economists’ expectations (51) and signalling extra weakening in public confidence.

Furthermore, the Current Conditions index edged lower to 50.9 from 51.9, while the Expectations gauge followed suit, down to 45.8 from 51.5, highlighting a downbeat scenario for the months ahead.

Inflation expectations, meanwhile, appear to have reignited somewhat: the one-year outlook rose to 4.6% (from 4%), and the five-year forecast went up to 3.4% from 3.3%.

Market reaction

The US Dollar remains slightly offered, flirting with the 99.00 region and fully fading the post-CPI bull run when gauged by the US Dollar Index (DXY).

Author

FXStreet Team

FXStreet

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